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The London Bach Choir has been around since 1876 when it debuted with a performance of Bach’s B Minor Mass.  For the next ninety or so years their gig didn’t get much attention except among those with a musical preference for things like, well… the B Minor Mass.

But all that changed in 1969.  Their exposure and listener-ship ballooned when popular singer-songwriter Michael Philip Jagger solicited their participation in a recording with his rock group, The Rolling Stones.  The result was a tune that has since become a staple in The Stones’ performance repertoire and in the world of popular music.

Few today are unfamiliar with its iconic lyrics:

You can’t always get what you want.
But if you try sometime,
You just might find,
You get what you need.

And so it is when older clients reach age 70-1/2 and want to use the required minimum distributions (RMDs) from qualified plans as a source of premium to buy insurance coverage, sometimes in response to carrier marketing programs encouraging the practice.

As an advisor, you should be aware of and alert your clients to several issues in this marketplace if you are to effectively manage expectations as well as make an achievable sale.

Middle-market prospects often don’t have financial justification for coverage

In these days of sizeable lifetime exemptions most don’t face any anticipated estate tax and most don’t have an income replacement need because they have little or no earned income in their retirement years.

Carrier enthusiasm is curbed when traditional financial needs don’t exist

And this despite marketing campaigns to the contrary.  An underwriter on a case is like the conductor on a train.  Nothing moves down the track till he or she gives the word.  And sales pieces are not always run by a carrier’s “conductor” prior to distribution.

The percent-of-net-worth solution

Many carriers are sympathetic to issuing insurance in an estate for liquidity, inheritance equalization, or the promotion of the ease of asset distribution.  Consequently some will allow, even in the absence of traditional justification, an amount of coverage determined as a percent of the total estate, the number varying among receptive carriers.  Existing coverage is taken into account.

So don’t just throw an app up against the wall

You must know the sympathetic carriers and be able to state a purpose for coverage other than “to increase the legacy.”  Those words were used in the title only to get your attention.  If you use them on an app they will surely get the attention of an underwriter, but not with beneficial results.

Give us your client’s situation and let us informally financially shop your case.  When submitted the stated purpose will be “see attached cover letter” which we will write for you based on prior conversations with the underwriter.

It is worth the time.  The coverage is on an older client utilizing a permanent product, a sale that will result justifiable compensation for your extra effort.

Both The Rolling Stones and the Bach Choir are still with us.  Jumpin’ Jack isn’t as Flashy as he once was.  But the Choir rolls on even expanding its footprint in the world of popular entertainment, participating in the soundtrack of movies like Robin Hood, The Chronicles of Narnia, Shrek the Third and Jack the Giant Slayer.

Call us with any older-client case you have at 706-354-0401 or tom@cpsadvancedmarkets.com.  You just might find that what you need is what you want.

Term Insurance is often used as a cost effective way to replace income, repay debts and/or provide a legacy in the event of a premature death.

In addition to these great functions, there are certain term insurance products that can provide your clients with more comprehensive benefits while they are still alive.

Promoting these solutions will not only deliver additional value to your clients, but will also help differentiate you from the competition in what is largely a price driven marketplace.

Consider This

For many clients, a major medical event (such as a heart attack, stroke or being diagnosed with cancer) can have devastating financial effects and leave their family unsure of how they will continue to make ends meet while paying for medical care.

Did you know that there are term insurance products which could be used as a source of income in the event that the insured were to experience once of these medical events?

With built in critical illness and chronic illness benefits, you can help your clients obtain coverage that will offer benefits while the insured is still alive.  There is even a product available with these living benefits that can accommodate non-medical underwriting for face amounts up to $249,999!

With the introduction of these living benefit features to the term insurance marketplace, you now have a simple sales concept that you can use to create new sales with prospects and existing clients alike.  How many of your clients would consider replacing their existing term coverage with a product that could pay benefits if they were to experience a major health event?

Contact us today for a copy of our Policy Review Kit and to learn more about the living benefit term solutions available in your state.

One of  our carriers rewards clients for their good health by granting credits against their health impairment ratings – resulting in better underwriting classes for permanent plan cases.

Studies have proven that people who live healthy lifestyles and who are generally fit, live longer – even if they have minor health issues.

During the underwriting process, this carrier will gather information from medical records, for applicants through age 70 around certain lifestyle factors and medical tests and will score each one.  Their final score will then be used for the purposes of improving the underwriting class or offsetting the table rating.

Sample Case:

• 64 year old male
• 5’11” 195 lbs
• Applying for $1.2 million of Universal life coverage
• Business owner
• Non-insulin dependent diabetes mellitus
• History of A1c testing reveals good control over last 5 years

The carrier initially offered Table 2.

Credits were applied based on the following favorable factors:

• Never used nicotine products
• Attending physician’s statement reveals regular aerobic exercise four times per week
• Colonoscopy screening normal
• PSA testing within normal limits

The carrier was then able to offer Standard Plus Non-Nicotine – a 3 class upgrade!

Our Underwriting Team is here to help with all of your impaired risk cases.  Please contact us today for more information about this carrier – and details of how we can help boost your sales.

You already know that quoting statistics doesn’t sell Long-Term Care Insurance.  That’s because most people don’t see themselves needing LTC services, and using statistics to try to tell them otherwise will do little to convince them.

Barraging prospective clients with product benefits and features doesn’t work either.  If they don’t believe they need LTC Insurance, touting all the bells and whistles of the product isn’t enough to make the sale.

So how do you get people to sit up and take notice?  Tell them a compelling, engaging story about the positive impact an LTC policy had on someone’s life.

Find a good story

Chances are you already have a story that will work for you.  Draw on your own experiences.  If you’ve ever had to care for a parent or grandparent, you know how difficult it can be.

Or you can use other people’s stories.  A story doesn’t have to be your own.  It can be just as powerful to share the experiences of family members, friends or clients.

Make it memorable

When telling your story, paint a word picture.  Don’t just describe what happened.  Instead, talk about how it made you or the people involved feel.

Also, you need to make sure your story is relevant.  A prospective client with no children probably won’t relate to a story about how difficult an LTC situation is on the kids.

Finally, don’t scare people.  Make sure your story has a happy ending that comes about because of LTC.

Get your clients to share their stories

According to a survey of LTC policyholders, 78% said they had a family member or friend who needed LTC services.

So your story may prompt prospective clients to recall stories of their own.  Ask questions that invite them to talk about these experiences.  Who knows, this might be how you get your next good story.

Here are five questions that will help you prompt clients to share their stories:

• Do you know someone who needed Long-Term Care services?
• Who provided their care? (Generally, a spouse or child is the primary caregiver.)
• What effect did this have on the caregiver?  On the family?
• How did they pay for the care they needed?
• What effect did this have on their finances?  On their retirement plans?  On the inheritance they hoped to leave for their kids?

For more sales ideas, contact your LTC Specialist today.

As discretionary income tightens in most households across the country, many Americans have put the purchase of retirement and insurance vehicles on the back burner, leaving themselves open to risk of severe loss and no way to indemnify.

While most would consider their greatest asset to be a house or a car, in reality a human’s most valuable asset is their ability to earn an income.

Without cash inflow, no insurance, investment, or savings product can be purchased and utilized.  Disability Income is a commonly overlooked portion of the planning process yet can be the most important piece of the puzzle.

Common misconceptions about disabilities

The main reason Disability Income is usually overlooked by Financial Professionals and their clients is the misconception of what causes a disability.

A recent consumer study released by the not-for-profit Council for Disability Awareness (CDA) reported that 71% of respondents said a disability is most likely caused by a serious accident.

In reality, insurance statistics show that only 9% of long-term disability claims result from serious accidents.  The remaining 91% of income-interrupting disabilities come from common ailments like back and joint pain, chronic diseases, cancers, depression and pregnancy.

If your client becomes ill with any of the conditions or disabilities listed above and are unable to work for a period of time, will they have sufficient funds available to continue paying for their numerous financial obligations?

We can help

We understand the challenges your clients may be faced with during periods of disability.

Our strong relationships with top Disability Providers allow us to help you find the best fit for your client regardless of their occupation.

Products range from simplified issue to fully underwritten with the goal of getting your client coverage as quickly as possible.  Nearly all respondents in the CDA study rated their ability to earn an income as more valuable than any other resource in maintaining financial security.  However, only 37% said they have thought about taking steps to protect their income.  Don’t let your client fall into the remaining 63%, the need is real.

Contact your dedicated Disability Sales Specialist to learn more about how we can help your clients protect their most valuable asset.

Back in the old days kids would buy a comic book for 10 cents (5 cents if the cover had been removed for re-sale) and peruse the back pages for ads that peddled everything from x-ray glasses to work-out programs that promised to make you into a he-man in two weeks.  Purchases were made by mail and paid for with cash, checks or stamps.  Buyers were alerted to allow 4-6 weeks for delivery!

Not today.  Now “graphic novels” cost around ten bucks and things kids need are purchased online with delivery assured almost the moment of the last key stroke.  Comedian Steven Wright described the acceleration of the pace of life well when he said, “Last night I made some instant coffee in my microwave oven and it almost went backward in time.”

The insurance industry has responded to the fast pace to which a new generation of buyers has become accustomed with abbreviated and accelerated policy underwriting and issuing programs.

And now you can do the same in drawing conclusions with regard to determining financial need for coverage in less time and little financial information.  Try this:

For most people, there is only one need

If a client doesn’t have estate tax concerns, then the only insurance need he or she has is for income replacement protection.  If a family is managing its affairs properly then maintaining its anticipated income level for the anticipated number of working years left will allow for maintaining the household and achievement of retirement goals.

Coverage for that need is easily calculated

Simply take the client’s current earned income and multiple it by the number of working years that remain.  In fact, because a death benefit is received income-tax free, use of after-tax income would still be adequate, but allow for a reduction in the amount of coverage sought.

Protection can be purchased economically

Coverage is needed for a known period of time (i.e. estimated number of working years remaining).  This is exactly when term insurance is needed.  There is no reason to buy higher-priced permanent coverage.  Beyond retirement clients may want to maintain some coverage for estate liquidity, but they can either apply for new permanent coverage or exercise the conversion privilege under the term policy.

The cost is guaranteed and can reduce over time

Clients can “lock-in” the cost of their income replacement protection with guaranteed level term insurance for a period that covers the number of anticipated working years.  As the number of working years reduces with time the death benefit on the policy can be easily reduced.  But often the face amount is left level to accommodate for raises, bonuses, or inflation.

A two-policy proposal

Don’t forget coverage on a spouse, especially if he or she is also a wage-earner.  But even a stay-at-home spouse raising children should be considered for insurance in an amount that would allow for providing the services necessary to keep the household in its accustomed style and schedule of life.

This simplified sales process also allows for more profitable execution of a term sale which, given the lower premium size, is less cost effective for you in terms of commission revenue.

Groucho Marx once commented on the pace of life when he observed:  “Time flies like an arrow.  And fruit flies like an over-ripe banana!”  I believe he would advise that to save time you call for help with your case-related tax and planning issues at 706-354-0401 or tom@cpsadvancedmarkets.com.

Companies that inquire about business evaluations are usually looking to learn how much their company is worth – and find business solutions through life insurance.  These solutions range from exit planning, business protection, transferring wealth to the next generation, and even retirement planning.

Recently, statistics have been released to help better identify the types of companies that typically inquire about business evaluations.

The resulting top five industries are:

The statistics also revealed that these companies are mainly S&C corporations, with about 13% being private partnerships – and an overwhelming majority have about 1-99 employees with over 25 years in their respective fields.  Half have an annual sales volume of $1-$3 million; 18% generate $3.1-$10 million, where 12% are reaching $10.1-$50 million in sales.  Less than 3% do more than $50.1 million in sales.

When owners use the business evaluation process, results can lead to significant opportunity.

Related planning in the form of a Buy-Sell case results in an average case size of $11,301.  Average case size for Key Person policies are $8,986.  Executive Bonus cases average $28,756.

Some other interesting statistics advisors should be aware of are the percentages of businesses that successfully pass operations on from one generation to the next: 70% of first-generation operations do not successfully transition to the next generation. 90% of the second-generation do not make it to the third generation, and 96% of the third-generation do not survive to the fourth generation.

The purchase of life insurance policies on the owners’ lives can ensure there is enough money to pass along to the next generation, to successfully run and operate the business going forward.  Or, if an owner has a child who has no intention of running the business, life insurance is a great solution to equalize this child’s inheritance, and help other family members who may be looking to take on the family business avoid any potential tension.

Please reach out to your Life Sales Marketing Manager to learn more about these statistics, and how life insurance is a critical part of the business planning process.

One of our carriers bases pricing of their table rated cases off of Standard Plus rates, rather than Standard rates like most of the others.

This pricing feature could make a significant difference to your clients’ with multiple health impairments.

Here is a success story:

• 46 -year -old male
• $5 million term policy
• No tobacco use
• 6’1”, 211 lbs.
• 2011 was diagnosed with Type 2 diabetes treated with Metformin
• A1c level 7.8, Blood pressure 135/84, Total Cholesterol 273, HDL 41, LDL 125
• Normal urine protein
• Client’s mother died of a stroke at age 68

This carrier issued a Table 2, and the premium was based off of Standard Plus rates, resulting in a significant cost savings to the client.

Contact the Underwriting Department to find out which carrier we’ve spotlighted here – and to learn of more ways we can help lower the premiums on your clients’ impaired risk cases.

More often than not, people don’t like to admit they need help with things they once did for themselves.  This often happens with those requiring Long-Term Care, once they need assistance they rely on their family to provide for them.

What happens when the family care giver can no longer be of assistance?  What happens when they get too burnt out or their abilities have been surpassed by the amount and type of care needed?

Once that final step has been taken and the caregiver realizes they need extra assistance, they usually file a claim.

Here’s how it works…

Assess Benefit Eligibility: This is the time when the insurance company checks to make sure the insured is eligible for care.  Usually this is when a health practitioner determines the insured is chronically ill and needs help with at least two of the six activities of daily living for a period that is supposed to last at least 90 days or if the health care practitioner determines the insured needs constant supervision due to severe cognitive impairment

Submit Notification: If you feel your client meets the eligibility criteria you can notify the insured’s insurance company that a claim is being made.  Notification should usually be made within 30 days of the onset of the need for care or as soon as reasonably possible.  Notification can usually be made by mail or telephone and should include the insured’s name and policy number as shown on the policy schedule

Then what?

• Once the notice of claim is received by the insurance company, a claim form is then sent to the insured.  The form should be returned along with a provider’s bill to document the proof of loss.
• Then the claim is evaluated to verify the insured meets eligibility requirements.  Often an assessment is scheduled or the insured’s health care practitioner is contacted to verify medical records
• Once the claim is valid, a case manager will work with the insured’s family or caregivers to determine appropriate types of care.
• After the policy’s elimination period has been satisfied, benefits will be paid to the insured or their care provider.

Although there is a good chance that the LTCi policies you sell today won’t have claims for years to come, it is also possible for an illness or injury requiring LTC services to strike one of your clients tomorrow.

It is best to be prepared and understand the claims process so you are fully prepared to help your clients put their LTCi policies into action.

For more information about LTC or the claims process, contact your LTC Specialist today.

The need for an income protection plan is not just for the Executive, Doctor or Attorney earning in excess of $150,000.  According to the United States Census Bureau, in September 2017 the average annual income in the United States was $51,017 from all occupations.

Average everyday working people (Middle America) are just as dependent on their income to provide for themselves and their families as anyone in those higher tax brackets.

Your opportunities are endless – reach out to your clients, friends, or family

Ask if they have an income protection plan in place should they get sick or hurt.  You can offer them an affordable plan to protect them and their family. Of the advisors I speak with every day, Life Insurance Agents, Health Insurance Agents, and P&C Brokers, 92% are not talking to their clients about income protection and how affordable it can be.

You can differentiate yourself as an advisor just by offering valuable coverage to your clients that no one has ever spoke to them about.

Here’s an example:

Did you know that the premium for a 40 year old Office Clerk for $2,500 monthly benefit is only $52.00 per month?  There are affordable plans for even part time Dental Hygienist and Registered Nurses working as little as 24 hours per week.

Talk about opportunities, there are over 192,800 Dental Hygienist in the US earning an average annual income of $70,000 and 2.7 million Registered Nurses earning approx the same income.

Never let premium be the reason your client’s income is left unprotected from an injury or sickness

The new affordable DI plans can fit most any budget.  The premium for a 35 year old Dental Hygienist for $2,500 monthly benefit is only $52.05 per month. A 40 year old Insurance Agent can purchase $4,000 monthly benefit for $60.28 per month.

Your clients want to buy Income Protection, but they need someone they know and can trust to ask them about it. You are at the front-line to educate your Middle America clientele about the vital need for income protection in the event of an injury or sickness and how affordable it can be.

Discuss income protection insurance with all your prospects and clients, because they may not understand the risk of losing their income should an injury or an illness strike.

Contact your Disability Experts for Marketing Tools and Sales Ideas to help your clients.